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Data Driven Innovations in Financial Services

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Customers at the centre of mainstream financial services have been experiencing momentous Digital-only services. A recent study from J.D. Power found that digital only banks deliver higher customer experience and mobile experience compared to traditional ones. It also found that only 43% of customers who use digital-only branches consider them as their primary bank. Digital-only banks would need to focus on multiple-channel consistency and ensure efficient service delivery to move from secondary to primary bank relationship.

Traditional banks have been venturing in digital-only offerings. For instance, Finn; a nationwide mobile-only bank was recently launched by JPMorgan Chase with suitable products for millennials and tech. savvy customers.

Santander, Standard Chartered, UniCredit, WEMA bank and many others had launched similar digital-only banks.

Previously, Santander, Standard Chartered, UniCredit, WEMA bank and many others had launched similar digital-only banks. However, they would need to enhance customer experience by personalizing their communication to ensure a competitive stance.

Service Transformations

Numerous companies are employing data capabilities to reduce risk, grow their business and improve customer experience. For instance; Lenda made use of data consolidation to reduce the duration of mortgage request and approval to 2 weeks resulting in improved customer experience.
Recently, Instabank deployed a swift loan application that employs data from multiple sources, enabling customers to apply within minutes and receive funds instantly.

Prospective underbanked customers are not able to access loans from traditional banks due to lack of financial history. However, Lendup has been able to provide loans and unsecured credit cards to 56% of unbanked population in the U.S. The company utilize data analytics and machine learning to identify potential credit worthy customers.

Similarly, Iwoca, a U.K. based underwriter developed proxy credit scoring method that made use of data from numerous sources including prominent online market places for SME’s loan risk assessment and identify requirements that will enable approval via traditional channels.

 

Big Data Strategy for Transforming Banking Regulatory Requirements

A recent report from IBM stated that assessing Asset liability management (ALM), liquidity risk (LR) and Interest Rate Risk in the Banking Book (IRRBB) are top priorities for banks and analytics seems to be the solution. For instance; a big European bank requires analytics to calculate IRRBB scenarios from 10 million records and another financial institution needed analytics to perform daily Liquidity Coverage Ratio & Net Stable Funding Ratio calculations for all 20 million of its discrete positions and so on. A suitable solution integrates big data technologies with risk management analytic functionalities, providing the needed results for risk managers and regulators. JETHRO’s JBI – Business Intelligent Suit is an efficient solution for your Bank.